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  • ddc:330  (45)
  • Bonn: Institute of Labor Economics (IZA)  (45)
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  • 1
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: Gender gaps in leadership roles may be reduced by increasing the number of women in career stages that typically precede high-status positions. This can occur by increasing the supply of experienced women, inspiring new female candidates for these positions, and/or changing beliefs about women as leaders. In this study, we investigate whether and how adding women to a career pipeline can reduce gender gaps in higher-ranking positions over time. Specifically, we examine the effects of women's local electoral success on subsequent female candidacy at higher levels of government in India from 1977 to 2014. We use close elections won by women contesting state legislature seats to identify the effect of pipeline expansion on later candidacy for the national parliament. The results indicate that for each additional lower-level seat won by a woman, there is a 30 percent increase in the number of female candidates in subsequent national legislature elections. This effect is driven by new candidates and not by career politicians, and women receive a disproportionately favorable increase in the vote share. These effects are strongest in areas with low levels of existing female political participation and empowerment. The findings are consistent with a mechanism in which exposure reduces bias, allowing for updated beliefs about the viability of latent candidates who then run for higher office.
    Keywords: J16 ; J71 ; P16 ; ddc:330 ; gender gap ; political candidacy ; female politicians ; India
    Language: English
    Type: doc-type:workingPaper
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  • 2
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: We here consider the effect of the level of income that individuals consider to be fair for the job they do, which we take as measure of comparison income, on both subjective well-being and objective future job quitting. In six waves of German Socio-Economic Panel data, the extent to which own labour income is perceived to be unfair is significantly negatively correlated with subjective well-being, both in terms of cognitive evaluations (life and job satisfaction) and affect (the frequency of feeling happy, sad and angry). Perceived unfairness also translates into objective labour-market behaviour, with current unfair income predicting future job quits.
    Keywords: D63 ; J28 ; J31 ; ddc:330 ; fair income ; subjective well-being ; quits ; SOEP
    Language: English
    Type: doc-type:workingPaper
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  • 3
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: This paper uses a model with overlapping generations to demonstrate that human capital accumulation can potentially attenuate factor price movements in response to birth rate shocks. Specifically, we show that if education spending per child is inversely related to the size of the generation, then there will be less movement in factor prices in response to the relative size of each generation. The degree of this attenuation effect will depend on the effectiveness of education spending in producing human capital. We also demonstrate that this attenuation effect tends to concentrate generational consumption risk around the generation subject to the birth rate shock. In a limiting case, we show that an i.i.d birth rate shock translates into an i.i.d. generational consumption shock. In other words, each generation bears all of the risk associated with their own demographic uncertainty. As a final exercise, we demonstrate that if the tax rate funding education spending varies with the size of the generation rather than education spending per child, then human capital does not influence the dynamic behavior of the economy in response to a birth rate shock.
    Keywords: J12 ; E21 ; I26 ; I31 ; J11 ; ddc:330 ; human capital ; consumption risk ; factor price movements ; fertility shocks
    Language: English
    Type: doc-type:workingPaper
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  • 4
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-18
    Description: Good public policy needs to be evidence based. However, the evidence base is thin for many policy issues. How can policy makers best respond to such thin areas of research that are also quite likely to change over time? Our survey investigates the evolution of the econometric evidence base for 101 economic issues, drawing upon 42,578 effect sizes (mainly elasticities and correlations) from 4,300 econometric studies. We evaluate the performance of six approaches to early research assessment: the simple unweighted mean; the median; the Paldam, "divide by 2" rule of thumb; the unrestricted weighted least squares (WLS) weighted average; the PET-PEESE meta-regression correction for publication bias; the weighted average of the adequately powered (WAAP); and WAAP-WLS. Lowest prediction errors are found in the Paldam rule of thumb and WLS. WLS typically reduces the initial exaggeration of thin evidence by half.
    Keywords: C1 ; H00 ; H5 ; ddc:330 ; WLS ; meta-regression ; thin evidence ; WAAP ; Paldam rule of thumb
    Language: English
    Type: doc-type:workingPaper
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  • 5
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: Applying propensity score reweighting to Italian administrative data covering the period 1994-2012, we study the conditional distributions of injuries by wage of native and foreign workers and distinguish between the component that is explained by observable characteristics and the component that is instead attributable to the immigrant status. Our analyses highlight some stylized facts. Besides a substantial gap in wage and injury risk that cannot be attributed to differences in the characteristics, foreign workers face higher levels of risk by the same level of wages. The gap is significantly above the level predicted by their observable characteristics by remunerations that are close to the minimum wage level set by collective bargaining. After this threshold, injury rates decline, but less steeply for foreign workers than their observable characteristics would predict. We show that the hedonic wage model could explain the first result as a corner solution whereby workers with low wage potential are forced to accept higher levels of risk due to the lower bounds on minimum wage. The second results could simply be explained by assuming different utility functions for natives and foreigners. We also show that the hedonic wage model is compatible with the marked reduction in injury rates and in the gap that we observe in the recession years.
    Keywords: J28 ; J70 ; ddc:330 ; occupational injuries ; propensity score reweighting ; wage gap ; foreign workers ; Di Nardo-Fortin-Lemieux decomposition
    Language: English
    Type: doc-type:workingPaper
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  • 6
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: We evaluate the Reggio Approach using non-experimental data on individuals from the cities of Reggio Emilia, Parma and Padova belonging to one of five age cohorts: ages 50, 40, 30, 18, and 6 as of 2012. The treated were exposed to municipally offered infant-toddler (ages 0 3) and preschool (ages 3 6) programs. The control group either didn't receive formal childcare or were exposed to programs offered by the state or religious systems. We exploit the city-cohort structure of the data to estimate treatment effects using three strategies: difference-in-differences, matching, and matched-difference-in-differences. Most positive and significant effects are generated from comparisons of the treated with individuals who did not receive formal childcare. Relative to not receiving formal care, the Reggio Approach significantly boosts outcomes related to employment, socio-emotional skills, high school graduation, election participation, and obesity. Comparisons with individuals exposed to alternative forms of childcare do not yield strong patterns of positive and significant effects. This suggests that differences between the Reggio Approach and other alternatives are not sufficiently large to result in significant differences in outcomes. This interpretation is supported by our survey, which documents increasing similarities in the administrative and pedagogical practices of childcare systems in the three cities over time.
    Keywords: I21 ; I26 ; I28 ; J13 ; ddc:330 ; childcare ; early childhood education ; Reggio Approach ; evaluation ; Italian education
    Language: English
    Type: doc-type:workingPaper
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  • 7
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: A common argument for quota policies is that they can increase the participation of targeted groups in positions that are not directly subjected to quotas or after quotas are no longer in place. I investigate this hypothesis empirically in the context of India, where one third of local political leadership seats are randomly assigned to be held by a woman in each election cycle. Quotas increase the number of female candidates who later contest seats in state and national legislatures, where such policies do not exist. This effect arises from the candidacy of beneficiaries who gained experience in local government due to the quotas and career politicians who continue contesting in longer-exposed areas. Effect magnitudes imply that the policy accounts for a substantial portion of the increase in female candidates for these bodies since the start of the policy. The new candidates have a higher probability of a top finish when they run on major party tickets or contest in areas where the local constituency overlaps closely with that of the contested seat.
    Keywords: J15 ; J45 ; ddc:330 ; quotas ; affirmative action ; political candidacy ; India
    Language: English
    Type: doc-type:workingPaper
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  • 8
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-18
    Description: We relate tax evasion behavior to a substantial literature on self and social comparison in judgements. Taxpayers engage in tax evasion as a means to boost their expected consumption relative to others in their "local" social network, and relative to past consumption. The unique Nash equilibrium of the model relates optimal evasion to a (Bonacich) measure of network centrality: more central taxpayers evade more. The indirect revenue effects from auditing are shown to be ordinally equivalent to a related Bonacich centrality. We generate networks corresponding closely to the observed structure of social networks observed empirically. In particular, our networks contain celebrity taxpayers, whose consumption is widely observed, and who are systematically of higher wealth. In this context we show that, if the tax authority can observe the social network, it is able to raise its audit revenue by around six percent.
    Keywords: H26 ; D85 ; K42 ; ddc:330 ; tax evasion ; social networks ; network centrality ; optimal auditing ; social comparison ; self comparison ; habit ; indirect effects ; relative consumption
    Language: English
    Type: doc-type:workingPaper
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  • 9
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-18
    Description: We analyze the provision of infrastructure by a foreign investor when the domestic bureaucracy is corrupt, but puts some weight on domestic welfare. The investor may pay a bribe in return for a higher provisional contract price. After the investment has been sunk, the bureaucracy may hold up the investor, using the threat of expropriation to demand a lower final price or another bribe. Depending on the level of care for domestic welfare, greater bureaucratic centralization may increase or decrease domestic welfare. Because of the threat of hold-up, bribery may result in greater domestic welfare than the honest benchmark does.
    Keywords: D73 ; H11 ; ddc:330 ; bribery ; hold-up ; renegotiation ; bureaucratic structure ; centralized bureaucracy ; decentralized bureaucracy
    Language: English
    Type: doc-type:workingPaper
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  • 10
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: This article examines the causal relations between non-European immigration and the characteristics of the housing market in host regions. We constructed a unique database from administrative records and used it to assess annual migration flows into France's 22 administrative regions from 1990 to 2013. We then estimated various panel VAR models, taking into account GDP per capita and the unemployment rate as the main regional economic indicators. We find that immigration has no significant effect on property prices, but that higher property prices significantly reduce immigration rates. We also find no significant relationship between immigration and social housing supply.
    Keywords: E20 ; F22 ; J61 ; ddc:330 ; immigration ; property prices ; social housing ; panel VAR
    Language: English
    Type: doc-type:workingPaper
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